Latest news with #PayFacs
Finextra
02-06-2025
- Business
- Finextra
Cashflows joins forces with Cardstream
Cashflows, the platform that makes it easy for businesses to accept payments, and Cardstream Group, the UK's leading independent Fintech provider, have entered into a strategic partnership to accelerate Cashflows embedded payments solutions for Independent Sales Organisations (ISOs), software platforms, Independent Software Vendors (ISVs) and Payment Facilitators (PayFacs) across the UK and Europe. 0 The strategy unites Cashflows' expert acquiring capabilities with Cardstream's market leading PFaaS infrastructure to dramatically simplify the launch and growth process for PayFacs, aspiring PayFacs, ISOs and ISVs in the market, by managing complex regulatory, compliance, and operational requirements on their behalf. PFaaS is redefining how embedded payments are delivered, giving PayFacs the tools to deploy payment services rapidly and seamlessly, with Cardstream already achieving success in many markets. As Cashflows has identified similar demand in the UK and Europe for flexible, integrated payment experiences, deploying Cardstream's PFaaS provides an end-to-end managed service that includes onboarding, compliance, merchant activation, and transaction processing—allowing the opportunity to monetise a payment facilitator model from the outset. "Our collaboration with a best-in-class partner like Cardstream, helps us to remove the complexities of embedded payments for platforms and PayFacs by providing a modular approach that removes technical barriers while empowering them with greater control over their payments," stated Hannah Fitzsimons, CEO of Cashflows. "By leveraging our in-house expertise, we're enabling them to evolve, thrive and concentrate on what truly matters: innovation and growth." 'As the embedded payments space continues to accelerate, we're seeing Acquirers, Schemes, Platforms, and Financial Institutions increasingly having to choose either build, buy, or partner,' said Adam Sharpe, CEO of Cardstream Group. 'Given the complexity, many are now turning to trusted, best-in-class partners with robust Fintech-as-a-services offering, such as those that Cardstream offers. This shift is driving significant growth in strategic collaborations across the industry.' In a market where embedded finance is becoming a strategic priority, Cashflows and Cardstream's combined expertise stands out by providing speed, compliance assurance, and commercial flexibility, without the usual infrastructure or licensing burden. Together, it sets a new standard for embedded payments—giving ISVs, ISOs, Platforms and PayFacs in the UK and Europe, everything they need to scale confidently in a highly regulated environment.
Finextra
14-05-2025
- Business
- Finextra
A Guide to Strategic High-Risk Merchant Management: By Jonathan Hancock
With a powerful growth engine, today's digital marketplace presents acquirers with the critical challenge of managing high-risk merchants. Success in this arena hinges on a dynamic and adaptable strategy, balancing opportunity with security. The definition of "high-risk" is fluid, constantly reshaped by technological advancements and shifting consumer behaviours. Therefore, acquirers must maintain a vigilant watch, identifying emerging high-risk segments such as cryptocurrency exchanges, online gambling platforms (where legal), telemedicine services, and businesses specialising in vaping or CBD products—these sectors each demand tailored risk mitigation strategies, reflecting their unique challenges and evolving regulatory landscapes. To effectively navigate this terrain, acquirers must leverage advanced data analytics. Implementing sophisticated tools enables deep insights into transaction patterns and the identification of anomalies. Employing behavioural neural network models facilitates the analysis of transaction data to detect potentially fraudulent activities. This data-driven approach, coupled with rigorous monitoring of chargeback rates and strict adherence to regulatory requirements, provides a robust foundation for informed decision-making. The support ecosystem surrounding high-risk merchants plays a crucial role in mitigating risk. Acquirers should actively foster collaboration with Independent Sales Organisations (ISOs), Independent Software Vendors (ISVs), and agents. These partnerships facilitate more substantial relationships with merchants, enabling assistance in refining refund and return policies, implementing robust fraud prevention measures, and ensuring compliance with industry standards. Payment facilitators (PayFacs) offer a strategic advantage in managing high-risk merchants. Utilising PayFacs to onboard these businesses as sub-merchants mitigates risk through tiered underwriting and automated processes. PayFacs' digital infrastructure streamlines operations, facilitating transparent pricing, accessible merchant services, and targeted value-added services. Their specialised expertise in specific high-risk verticals further enhances risk management capabilities. However, not all high-risk segments are created equal. Acquirers must exercise caution and, in some cases, outright avoidance. Illegal gambling operations, unauthorised prescription drug sales, and websites featuring prohibited adult content present significant legal and regulatory risks that far outweigh potential rewards. Prioritising legal and regulatory compliance is paramount when evaluating these segments. Rigorous due diligence is essential for mitigating risks associated with high-risk merchants. Acquirers must thoroughly evaluate business models, transaction histories, chargeback rates, regulatory compliance, and overall reputation. Implementing regular audits, even post-onboarding, ensures ongoing compliance and risk mitigation. Employing stricter financial safeguards, such as reserves or holdbacks, and potentially requiring personal guarantees from business owners provides an additional layer of security. Effective management extends beyond initial vetting. Implementing robust fraud prevention measures is crucial. Advanced fraud detection systems powered by machine learning and AI enable identifying and preventing fraudulent activities. Real-time transaction monitoring allows for prompt detection and response to suspicious activities. Maintaining clear communication with merchants and ensuring consistent adherence to industry and payment scheme standards are equally vital. Maximising transaction processing efficiency minimises downtime and ensures continuous operation. The regulatory landscape is constantly changing, requiring acquirers to remain vigilant. Staying informed of new rules and compliance requirements introduced by card networks and regulatory bodies is essential. Implementing additional authentication measures, such as those mandated by initiatives like VIRP and PSD2/PSD3, for high-value remote transactions is necessary. Compliance with card scheme monitoring programs and prompt address of excessive fraud and chargebacks is also critical. Acquirers must continuously evaluate risk management strategies and adapt to threats and regulatory changes. Fostering a culture of compliance within any organisation, emphasising ethical and responsible business practices, is essential. By adhering to these strategic principles, acquirers can effectively manage high-risk merchants, fostering growth while safeguarding their interests and maintaining the integrity of the payment ecosystem.
Yahoo
09-04-2025
- Business
- Yahoo
Fiserv buys Australian paytech Pinch Payments
Fintech and payments company Fiserv has acquired Pinch Payments, a payment facilitator (PayFac) based in Australia. Financial terms of the deal remain undisclosed. Set up in 2017, Pinch Payments is known for its PayFac enablement platform "Glassbox" and serves nearly 2000 merchants in Australia and New Zealand. This acquisition is aimed to expanding its service offerings in the Asia-Pacific market. It provides Fiserv with a payment orchestration solution, supporting service options for PayFacs, ISVs, BPSPs, ISOs, and enterprises. The addition is expected to extend the company's merchant reach and enable the delivery of new solutions, including the integration of the Clover cloud-based SaaS business operating platform, to merchants across the APAC region. Pinch Payments CEO and c-founder Paul Allen stated: 'Joining Fiserv is an incredible opportunity for the Pinch team and furthers our mission to provide seamless partner experiences to a growing number of merchants. Having worked closely with the Fiserv team, I am confident in our roadmap to expand into new markets.' Fiserv Australia head Gavin Jones said: 'This acquisition further demonstrates Fiserv's commitment to the local payments market, following our recent launch of Clover in Australia. By integrating our leading digital payments solutions with Pinch's innovative technology and local expertise, we are able to deliver innovative payment solutions to empower merchants across the APAC region. 'We welcome the Pinch associates to the Fiserv family and are committed to seamless integration of services for our customers.' Last month, Fiserv acquired CCV, a Dutch payments technology provider with operations in the Netherlands, Belgium, and Germany. Moreover, last month, the company also finalised the acquisition of Payfare, a firm offering instant payout and banking solutions to workers in the gig economy. It purchased all the issued and outstanding shares of Payfare at a price of C$4.00 per share, amounting to a total acquisition cost of C$193.15m. "Fiserv buys Australian paytech Pinch Payments " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
